Interesting article about Oil

wanghong

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8 h) I" R( r' C1 g/ SBelow is an Interesting article I found, which says that.....Do not
2 h  F4 I( Z* P8 Y. T- fexpect much from Crude Oil producers and future is not with the
1 e, z1 t( }' ?" J0 G% r6 T' Acompanies producing Jet fuels but Biofuels. Also no wonder if some of
5 ~0 Y1 ^. b/ a4 V* `: {these oil producer will go bankrupt or out of the business even if
5 q! k7 @- z. B; ^0 I- B* Ecrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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& c* y1 k% s6 g0 m% ZRecently OPEC reduced crude oil production twice over just a few
4 W9 m% k5 A3 P" V( r: xmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
3 ]0 a: z: [1 P" Y* JA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
, O3 g" G2 z( E6 Vof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
( I( i5 S* V# d% u+ p0 vArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
" M( `1 ]# b4 i1 F' g2 Obeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
) P/ h, M; c6 M" }& g0 i( [- Dfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


& Y. x5 L8 H( @* @3 E. H& i5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
  {, u3 b7 a+ C+ Hproducing 30,000 gallons of bio-diesel per day from pork fat.

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& t4 L/ ~( ^  |9 q( V6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
4 ]  n" g* p# `( uexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
) j7 D( d' N' @1 X* ?! Twith new more fuel efficient equipment. Airlines and railway companies
' _7 g. E0 F8 Pare experiencing 20% to 25% better fuel econony with the new
" c% r9 P8 B8 j0 G/ W: Cequipment.

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1 C' F+ f5 o8 K* M8 KAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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3 g% o" D$ `+ q  ^8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


3 u3 G- J$ b2 e$ @! J10. Solar, wind and ocean energy is displacing oil as an energy
3 Q' J; G! V3 O, x% y, M$ F8 |source. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
: c8 X7 }$ t) p* W4 Z+ }  ?' `: g/ Ichanging. The important thing is that OPEC no longer has the ability
! u( y4 k; x' Y2 T7 |/ Eto control oil prices.


With the above scenario, I still believe that there are under
. X# {7 B* Q0 h! f, A. _4 Cperformed OIL companies and probably they are yet to get the justified
5 O7 V* O+ `7 z1 Uvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only